[conspire] HP Melt Down

When talking about a company's challenges, it is only fair to also mention positive attributes. HP still has loyal enterprise customers, they have a viable (albeit small) consulting division, they also have a decent enough PC channel. Would be interesting to know what percentage of systems are shipping with Itanium. Anyway, HP is firm enough in some areas, so the cure is to cut out any under performing areas unless they have future value. HP has been using more AMD processors recently. I'm not sure if AMD has anything equivalent in performance to Itanium, but if they do then HP should drop Itanium and use AMD, except that they then become dependent on an external supplier, so if they can swing it I would say HP should acquire AMD and assure all of AMD's OEMs and channel partners they will receive fair treatment. HP needs to emulate IBM if they want to survive. Oracle is doing this, via acquisition. But the important thing is that a company have a
coherent strategy and offer well thought out product lines and services, that don't conflict with each other. This is something I forgot to mention, that HP offers similar products from different divisions; that needs to end, which implies a re-org. I think if HP reorganizes and jettisons the losers that can survive and even if they end up a smaller company they can grow if the new incarnation is better organized and offers viable products and services. I think open source software can play an important role, just as it did for IBM.
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